The subject of board diversity is everywhere these days, with most of the focus on the “glacial” change in the number of women in board positions. In Alberta, women are noticeably absent from the boardroom table, occupying just 8% of corporate board seats, compared with 14% nationally and 15% in the United States.

Alberta has one of the most productive and innovative business sectors in the world, so why is it so far behind in terms of board diversity?

As two professionals who advise corporate leaders on board governance, best practices, and risk mitigation, we would argue that the majority of our corporate colleagues are largely unaware of this province’s low diversity ranking, and of research that links board diversity with higher returns on equity, lower debt, higher stock valuations, and higher growth. In our experience, the under-representation of women in Alberta boardrooms is symptomatic of some outdated thinking about what makes a great board member, and what great boards need to do. And that thinking is not unique to Alberta.

For many, a gender focus still connotes quotas at the expense of quality, a notion that will never fly in most corporate circles

Traditionally, board members and recruiters have favoured nominees with direct CEO/CFO experience — or with skills gained along conventional corporate career paths. They may want to elect more women to their boards, but can’t find enough of them with that traditional, and fairly limited, skills set.

But a change is coming: progressive companies are recruiting outside of their networks and searching for directors with sector-specific knowledge and a stronger consumer orientation. By targeting a different talent base, these companies are enlarging the ranks of qualified women on boards while maintaining a focus on quality. Others are creating advisory boards featuring diverse ages and social backgrounds. Both approaches are helping companies avoid “group think,” promote innovation, and build more globally competitive companies.

To go beyond conventional wisdom surrounding talent, many companies also need to enlarge their thinking about effective board governance. More than managing financial risk, boards need to be aware of the broader organizational and strategic issues that put many companies at risk for underperformance at one end, and takeover and layoffs at the other. By and large, these risk are mitigated when corporate leaders gain knowledge from a diverse pool of talent that can challenge traditional thinking, and reflect the viewpoints of a variety of stakeholders, especially customers and shareholders.

But perhaps the biggest reason Alberta lags in board diversity is because of the language we use to promote it. For many, a gender focus still connotes quotas at the expense of quality, a notion that will never fly in most corporate circles, especially Alberta’s. Perhaps that’s why we’re seeing a lukewarm response.

To our colleagues in women’s board-focused professional groups we offer this: if we want to see more women on boards, we need to lead with the talent argument and let gender diversity be the outcome, not the goal.

And to our business colleagues in Alberta, we encourage you to let go of the traditional thinking around board directorships and governance because it will hold us back from even greater gains in the long term. While we enjoy one of the most robust economies in the world, we could lose that leadership position if we don’t take the diversity imperative seriously. Better corporate performance through diversity of talent is the innovation the new millennium economy demands.

—Debby Carreau, MBA, is CEO of Inspired HR and an expert in maximizing human capital. Beth Reimer-Heck, QC, is Counsel at Borden Ladner Gervais LLP who has spent 25 years as a corporate commercial lawyer counseling clients on board governance and risk management.